The combined ratio is an important measure of the performance of property/casualty insurers because:
A) It indicates the profits (losses) from underwriting and from underwriting and from the securities portfolio.
B) It indicates the profits (losses) resulting after underwriting expenses are netted against premium and investment income.
C) It indicates the combined profits (losses) on underwriting health and automobile policies.
D) It includes both loss expenses and operating expenses relative to premiums earned.
E) None of the above.
Correct Answer:
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Q25: Reinsurers are used by property/casualty insurers:
A) To
Q26: Statutory Accounting differs from GAAP accounting because
Q27: Property/casualty insurers' asset portfolios are likely to
Q28: The long tail in liability insurance refers
Q29: The law of large numbers suggests that:
A)
Q31: The Net Underwriting Margin (NUM) is a
Q32: Property/Casualty insurance companies are often under statutory
Q33: A P/C insurance company has a loss
Q34: U.S. insurance companies are regulated solely by
Q35: A life insurance company has policy expenses
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